Warn Your Past Clients About Facebook

A recent report indicated that there have been several home burglaries committed by individuals using Facebook to get information from people talking about going on vacation. Facebook is a wonderful way to share your memories about that great vacation, but to share the details of when you may be gone from your home opens the door (no pun intended) to thieves looking for that vacant home.
This is a great little contact point for your database, especially during these holiday travel times. Send out a quick email letting your past clients know you care about their safety.
Have a wonderful holiday season and get ready for a wild yet potentially fruitful next year!

Report Shows Loan Costs RIse

With all the hoopla surrounding the new disclosures, RESPA, and new GFE (good faith estimate) changes, it is interesting that a new report indicates that nationwide loan closing costs have risen 37% over this time last year.

HUD had touted that these new regulations would help the borrower reduce closing costs. But with HVCC, new title and escrow charges, changes with YSP (yield spread premium), etc., the fact remains that everytime you find more paperwork involved and more stringent guidelines imposed, everyones costs to get the job done rise and the end result is the consumer pays more.

HUD has been looking at reducing the seller paid closing cost percentage on a FHA loan from 6% to 3%. The National Mortgage Bankers Association has asked HUD to think more along the lines of only going down to 4% in light of these raised closing costs.

HomePath Loans Provide New Buyers

Imagine the tax credit going away. Oops. Happens tomorrow. What do we have in our marketing arsenal to get buyers? How about a loan that has a lesser down payment than FHA, has no mortgage insurance, no appraisal needed, and allows for up to 6% for buyers closing costs? Interested yet? The FannieMae Homepath loan program may be just what will bring you more buyers when you start to get the word out on this great product.
Tied to properties that are FNMA foreclosures, (there are 117 currently in my county alone), the details are as follows:

• Low down payment
• 5% down on DU Approve/Eligible findings with buyers own funds
• 3% down on DU Flex Approve/Eligible findings using buyers funds, a gift, a grant, or a loan from a non-profit, state or local government, or employer
• Available for Owner Occupied, 2nd home and investment properties
• No MI required! No appraisal needed (LTV based on FNMA sale price)
• Available for Conforming High Balance loan limits
• Up to 6% seller contributions up to 97% LTV
• Owner occupied = minimum 660 credit score - High Balance = 90% LTV & 700 credit score
• 2nd home = 95% LTV and 700 credit score
• Investment = 85% LTV and 700 credit score

A list of homes allowed under this program are readily available for your buyers. Add this to your marketing and watch the phone ring off the hook! You may contact me for further details.

Tax Credit Continues for Some Beyond April 30!

Question - Does the tax credit end for everyone that has not signed an offer to purchase by April 30?

Answer - NO!! Any member of the military, Foreign Service, or intelligence community that has been assigned on extended duty outside of the U.S. for a period of at least 90 days from January 1, 2009 to April 30, 2010, can still take advantage of the tax credit until April 30, 2011. Qualified official extended duty is any period of extended duty while serving at a place of duty at least 50 miles away from the taxpayer’s principal residence (whether inside or outside the U.S.) or while residing under government orders in government quarters. Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.


Agents should be constantly marketing this fact! Little has been said by the media. Now is your time to shine with knowledge and grab more clients. There is a website devoted to the tax credit for first time and certain long term home owners. See http://www.giveme8000.info/ for all the details.

Alert Your Buyers -FHA Loans to Get More Expensive

Perfect time to contact those fence sitting buyers. FHA will see added costs to obtain the loan starting on April 5th. All FHA case numbers assigned after that time will have an Up Front Mortgage Insurance Premium (UFMIP) of 2.25%, up from 1.75%. This increase added to the anticipated rise in interest rates as the Fed pulls out of buying Mortgage Backed Securities (MBS) will make loan more costly. In addition, the tax credit is going away unless the purchase and sale agreement is signed around by April 30.
A good article explaining interest rates and the MBS can be found here:
http://www.mortgagenewsdaily.com/03182010_mbs_purchase_program.asp